The Delaware Supreme Court sided with Texas Instruments Inc., upholding the company’s cross-licensing agreement with Qualcomm Inc.
“We are pleased that the Delaware Supreme Court has upheld the Court of Chancery’s ruling in TI’s favor on these issues,” said Joseph Hubach, TI’s senior vice president and general counsel. “We believe that this was the correct outcome.”
A Qualcomm spokesman pointed out that the court did previously rule that TI violated the provisions of the companies’ agreement. However, the court found that the violation was not “material,” so the agreement stands.
Qualcomm and TI entered into a cross-licensing agreement in 2000. Qualcomm sued TI over the agreement, but in several decisions courts have upheld TI’s argument that it did not materially breach the agreement. TI said that the “license rights of each party under the cross-license agreement remain in effect.”
